Boston, MA 07/26/2013 (wallstreetpr) – During the last quarter, Bank of America Corporation (NYSE:BAC) has earned $ 4 billion in spite of being the second largest lender. The book value of the company has actually declined, though by $ 0.01 for each share only. Bank of America Corp has faced the greatest challenge to remain as profitable. Out of the last six quarters, the fourth quarter was BAC’s worst. Since the fourth quarter, the Bank of America has been able to decreases the expenses and could come to stay on the equal grounds with the other banks. Bank of America is currently not the favorite bank for the customers. However, one should get inspired by the way the Bank has been able to bring down the efficiency ratio so largely since the fourth quarter.
Although, Bank of America has brought down the efficiency ratio, this has not been translated into the increase in customer deposits. Bank of America holds the lower deposits when comparing with the other banks which either increased or stayed constant with their deposits. In addition to increasing deposits, another way to show the revenue growth is by providing loans. While the deposits of Bank of America have been lower, the bank loans have constantly kept rising except during the second quarter in this year. Along with Citigroup, the Bank of America has grown whereas Wells Fargo has fallen consistently over the past five quarters due to the mortgage rates.
The net income of Bank of America was increased by 63% year by year which was driven by the net income from interest, investment, brokerage, investment banking, sales, trading, equity, credit and finally, the reductions in expenses. During this quarter, the revenue of Bank of America has increased by 3%. The bank has been able to build the capital ratios though the high interest rates have inhibited the bond portfolio. During the last trading session, the price for Bank of America has been increased from $ 13 to $ 16 by Sandler O’Neill. In addition to this, Bank of America has touched the two year high of $ 15.03.
